Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • Charges set aside against Goel Ganga

    District forum had indicted the builders for not executing agreement to sale deed

    Consumer Disputes Redressal Forum


    DNA Correspondent

    The Maharashtra State Consumer Disputes Redressal Commission has set aside orders of the Pune District Consumer Redressal Forum indicting the Goel Ganga Developers Private Limited in a case filed by a resident of Mohammedwadi alleging deficiency of services. The dispute between Goel Ganga Developers Private Limited and the resident was over the booking of a flat in their Ganga Sparsha project, which was later cancelled.
    The State Consumer Disputes Redressal Commission’s presiding member PN Kashalkar and member Dhanraj Khamatkar issued the order in this regard on an appeal moved by Goel Ganga Developers Private Limited.

    The commission observed that the Pune District Forum had not taken into consideration that the developers had returned the booking amount of Rs1 lakh to the plaintiff, which the plaintiff had accepted, and therefore there was no contract between the two. Major Harshinder Thakur and his wife Preetika had moved the plaint in the district forum on April 5, 2011. The district forum had issued an order on August 16, 2011 directing Goel Ganga Developers Private Limited to execute agreement to sale deed of Flat No 601 ad measuring 915 sq ft in the name of the plaintiffs at the rate of Rs2,700 within 30 days of the order’s issuance. The consumer forum also directed Goel Ganga Developers Private Limited to pay compensation of Rs25,000 and suit cost of Rs5,000 in 30 days from the date of order. The forum’s order instructed Goel Ganga Developers Private Limited to pay interest on the compensation and suit cost amount at the rate of 12% in case it didn’t pay the sum by the deadline.

    As per the plaint, “The Thakurs had booked a flat ad measuring 915 square feet at Ganga Sparsha in Undri at the rate of Rs2,700 per square feet. Of the total cost of Rs26.50 lakh, the Thakurs had paid Rs1 lakh and had withdrawn 75% of the amount from government provident fund for this. They had prepared two demand drafts of Rs52,420 and Rs26,210 denomination to pay stamp duty and registration. The drafts became outdated, as the agreement deed was not executed in time. Later, they were told to pay at the rate of Rs 3,200 per sq ft.”

    After the district forum ruled in favour of the plaintiff, Goel Ganga Developers Private Limited appealed against the forum order in the state commission through its lawyer Hitesh Jain. Jain argued that firstly there was no agreement between the Thakurs and Goel Ganga Developers Private Limited under the Maharashtra Ownership of Flat Act, and secondly the builder had returned the booking amount of Rs1 lakh by cheque, which had been accepted by Thakurs.

    He argued that the Thakurs neither encashed the cheque given by Goel Ganga Developers Private Limited nor returned it to the builder. He also argued that the district forum had no pecuniary jurisdiction to consider the matter, as it can entertain the matter involving amounts of up to only Rs20 lakh.

    Kumar Devi, CEO, Goel Ganga Group reacted to the commission’s decision saying, “We are satisfied with the court’s verdict, because it vindicates our stand that customer needs to get into a valid agreement with the developer for accepting the price stipulated by the customer. Any customer who does not sign the agreement and yet demands a price, which has become invalid with passage of time is unjustified.”

    Source :- DNA

    >> What does this mean for buyers ?

    Never book without agreement, else be guaranteed that you will be duped in future. Just see how builder changed the rate & as agreement was not done, they lost the case. Wonder how did buyer acted this way, especially when builder was Goel Ganga.:bab (45):
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  • Knight Frank report on Pune RE - Oct 12

    Happened to read this report on one of the websites and thought of sharing..

    Link: Pune, the most preferred affordable housing destination
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  • Originally Posted by frugality
    Good article however for Puneites the picture is more like Banglore ... i.e. avg 2 bhk price of 50 - 54 L
    while its reverse for banglore ... i.e. avg price of 42-45 L

    As according to this Pune is just 10% costlier then Hydrabad ? really !!!

    Hyd most rates are in 2000 psf to 3000 psf ... which is rare in Pune ...
    considering it 40% costlier then hyd, Pune's avg 2 BHK will stand at 55 L


    for Pune there are just 3-5 area out of 40 odd places listed which have price below 3500 psf .... 70% have range of 4300 - 4800 psf
    http://www..com/Property-Rates-Trends/ALL-RESIDENTIAL-rates-in-Pune

    while for Hyd only 6 areas have price in range of 3000 - 3800 ... rest ALL 22 area are in range of 1650 - 3000
    http://www..com/Property-Rates-Trends/ALL-RESIDENTIAL-rates-in-Hyderabad

    Similarly for Banglore there are 50% areas which are below 4000 psf
    http://www..com/Property-Rates-Trends/ALL-RESIDENTIAL-rates-in-Bangalore

    so if any correction comes it is very likely for Pune having 10-30% correction range


    so while analyzing just reverse these cities for a view point.



    100% Agree with your statements and figures. There are no areas in Pune where property prices are lower than 3500/- Apart from that, the construction quality, approach roads, public transport and utilities are worse in Pune.
    In the so called "Prime" area of Wakad, where builders quote more than 4500 per sft (actually it goes more than 5500/- when you see final price) there is still no water supply in several societies that are occupied since 3+ yrs. These kind of issues, raise the monthly maintenance cost.
    I have done such a mistake by buying a 3Bed flat in Wakad, getting 11k rent and paying 3k in maintenance... sounds ridicules, isn't it?
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  • Originally Posted by realacres
    Pune:

    Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Friday virtually ruled out an early rate cut, saying inflation is still "quite high" and the central bank is on a high alert. "At 7.45 per cent, inflation is certainly quite high," Subbarao told reporters on the sidelines of an event in Pune.

    Subbarao said the RBI was concerned about inflation as well as the slowdown in the economic growth. "We are always on high alert - high alert about growth and about inflation certainly," he said. The central bank has kept the key policy rates steady since lowering it by 0.50 per cent in April review.

    Industry lobbies as well as the government have been asking the central bank to cut rates in order to stimulate the sluggish economic growth, which has fallen to nearly a decade low. In the second quarter review of monetary policy for 2012-13 announced October 30, the RBI lowered the cash reserve ratio (CRR) by 0.25 per cent, but kept repo and reverse repo rates, which determine lending and borrowing rates by the commercial banks unchanged. The tight monetary policy has dampened business sentiments and Finance Minister P Chidambaram has expressed his unhappiness over this.

    Inflation still too high says RBI, dashes rate cut hopes - Business - IBNLive


    When is the governors tenure due to expire? :) Dont see him getting reappointed.
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  • Originally Posted by vishal1406
    100% Agree with your statements and figures. There are no areas in Pune where property prices are lower than 3500/- Apart from that, the construction quality, approach roads, public transport and utilities are worse in Pune.
    In the so called "Prime" area of Wakad, where builders quote more than 4500 per sft (actually it goes more than 5500/- when you see final price) there is still no water supply in several societies that are occupied since 3+ yrs. These kind of issues, raise the monthly maintenance cost.
    I have done such a mistake by buying a 3Bed flat in Wakad, getting 11k rent and paying 3k in maintenance... sounds ridicules, isn't it?



    Well the mistake is holding onto that flat in Wakad. If your rental yields are so low why not sell it make money on the capital gains? There are many people who want to stay in Wakad.

    Also a different question. by paying 3K in maintenance are you getting water 24/7 using tankers or something else?
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  • Originally Posted by punerebuyer
    If it is a resale, don't worry about the psft rate. Just ask the final quote and do the calculations on your own. Just meet the owner, say the number you want to spend and start negotiating.


    +1. Dont stress too much on deriving psft on carpet, superbuilt up artio etc. you must have seen the property, decide whether the room sizes and layouts are as per your liking. Also consider the following things:

    1. Ventilation and day light
    2. Directions and layout (if u believe in vastu)
    3. condition of the flat/ building,
    4. Availbility of water and electricity
    5. Crowd/ neighbour quality and caste (if it matters to you)
    6. Locality interms of markets/ schools/ hospitals and public transport (depending on what you and your housemates require)
    7. Convenience/ distance to travel to and fro work
    8. Distance from your social circle,ie: extended family, relatives, friends

    I listed things which typically decides one's life style. of all the above, you know best what to stress on and what is it that doesnt matter.
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  • So the party continues for some more time.. Bank funds will payroll Congress 2014 poll

    Chidambaram asks banks to fund residential projects to revive faltering growth - The Economic Times

    MUMBAI: Finance Minister P Chidambaram has asked banks to lend a helping hand to builders, particularly those involved in construction of residential properties, in order to revive faltering economic growth.

    The minister discussed the problems of the real estate sector with the chiefs of state-run commercial banks at a meeting last week in New Delhi. Bankers who attended the meeting described the broad thrust of Chidambaram's comments, but declined to speak on record.

    "The minister asked banks to fund those residential projects that are stuck for want of funds. This, according to him, will help kickstart the economy," said a bank chief who attended the meeting.

    In August this year, shortly after returning to the ministry, the finance minister had asked banks to put pressure on builders to lower prices in order to reduce a growing inventory of unsold apartments.

    During the meeting, Chidambaram reviewed a report prepared by Ajai Kumar, CMD of Corporation BankBSE 0.78 %, on unsold stock in the real estate market and the way ahead.

    The report highlighted the need for builders to arrange their own resources for equity.

    CREDIT SLOWS DOWN

    It also stressed the need for builders to open an escrow account with banks. As of now, many builders show advances collected from purchasers of property as their equity contribution.

    The report, according to people at the meeting who described its contents, said this should end. This is because the builder does not have any stake in completing the project.

    In its edition dated November 17, this paper had reported that half of the 3,23,000 apartments due for delivery in 2013 were likely to be delayed on account of problems faced by builders, including lack of financing and delayed clearances.

    Further, one-fourth of apartments due for delivery in 2014 were likely to be delayed, according to the report from real estate research firm Liases Foras.

    Credit from commercial banks to the real estate sector rose only 4% for the year ended September 30, 2012, compared with a double-digit rise in 2010-11, a possible indication of the diminishing attraction of the sector.
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  • Originally Posted by Sharpj
    Chidambaram asks banks to fund residential projects to revive faltering growth - The Economic Times

    MUMBAI: Finance Minister P Chidambaram has asked banks to lend a helping hand to builders, particularly those involved in construction of residential properties, in order to revive faltering economic growth.

    The minister discussed the problems of the real estate sector with the chiefs of state-run commercial banks at a meeting last week in New Delhi. Bankers who attended the meeting described the broad thrust of Chidambaram's comments, but declined to speak on record.

    "The minister asked banks to fund those residential projects that are stuck for want of funds. This, according to him, will help kickstart the economy," said a bank chief who attended the meeting.

    In August this year, shortly after returning to the ministry, the finance minister had asked banks to put pressure on builders to lower prices in order to reduce a growing inventory of unsold apartments.

    During the meeting, Chidambaram reviewed a report prepared by Ajai Kumar, CMD of Corporation BankBSE 0.78 %, on unsold stock in the real estate market and the way ahead.

    The report highlighted the need for builders to arrange their own resources for equity.

    CREDIT SLOWS DOWN

    It also stressed the need for builders to open an escrow account with banks. As of now, many builders show advances collected from purchasers of property as their equity contribution.

    The report, according to people at the meeting who described its contents, said this should end. This is because the builder does not have any stake in completing the project.

    In its edition dated November 17, this paper had reported that half of the 3,23,000 apartments due for delivery in 2013 were likely to be delayed on account of problems faced by builders, including lack of financing and delayed clearances.

    Further, one-fourth of apartments due for delivery in 2014 were likely to be delayed, according to the report from real estate research firm Liases Foras.

    Credit from commercial banks to the real estate sector rose only 4% for the year ended September 30, 2012, compared with a double-digit rise in 2010-11, a possible indication of the diminishing attraction of the sector.


    This is the same old news! FM was working on a package for RE industry.
    Even with this advice, will the state run banks be able to fund realtors ?

    They are already struggling with high NPAs which in turn have forced them to provision more (reserve more funds) and hence even CRR cut is not helping much to lend more money to borrowers.

    State run banks are already suffering with 6k cr debt write down for Kingfisher!

    State run banks have more sectors to bail out such as telecom.

    Govt can't infuse much liquid into state run banks with widening deficit. With Rupee weakening further, this gets even tougher, specially when you have credit rating downgrade looming.

    Given all the points above, the news in last couple of days is just paid propaganda, after very poor Diwali for realtors to create some optimism amongst RE bakaras. If you read the second part of ET report, it even goes ahead and states that banks haven't communicated anything to realtors about reducing rates!

    If you read Knight frank report carefully, it doesn't even say prices "may" appreciate! It says prices "will" appreciate. The entire price prediction was based upon IT, ITeS sectors progress for Pune! It would be interesting if they publish where IT salaries and jobs are going in next 5 years.

    Bad loans of state run banks at 1.43 Lakh cr -

    Bad loans of state-run banks are Rs 1.43 lakh crore as of September - The Economic Times
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  • Bad loans of state-run banks are Rs 1.43 lakh crore as of September

    Bad loans of state-run banks are Rs 1.43 lakh crore as of September

    NEW DELHI: Bad loans of public sector banks stood at 1.43 lakh crore as of September, 2012, Parliament was informed today.

    Non-performing assets were Rs 1.12 lakh crore as of March 31, 2012, 2012, Minister of State for Finance Namo Narain Meena told the Rajya Sabha in a written reply.

    "The gross non-performing assets (NPAs) of public sector banks (PSBs) was Rs 1,12,489 crore as at end March, 2012 and Rs 1,43,765 crore as at end September, 2012," he said.

    "The gross NPAs of State Bank of India was 33 per cent and 31.9 per cent of the GNPAs of PSBs as at end of March, 2012 and September, 2012 respectively," he added.

    Overall, 16 out of 30 Sensex-based scrips closed in the green while others finished in the red.

    Among sectoral indices, the BSE-Consumer Goods rose by 1.07 per cent and BSE-IT by 0.85 per cent while BSE-Oil&Gas eased by 0.49 per cent.

    "Renewed buying was seen in select banking stocks like HDFC bankand SBIN on hopes of Banking Bill being passed in the current Parliament session," Nidhi Sarswat, Sr Research Analyst, Bonanza Portfolio, said.

    "The no confidence motion, as expected, has been rejected. LIC is allowed to raise stake to 30 per cent in companies from 10 per cent which will help address the key concern of fiscal deficit. This being the single largest factor along with indirect revenue targets exceeding, seems good for the market," Kishor P Ostwal, CMD, CNI ResearchBSE -0.98 % said.

    Engineering major L&T moved up by 1.72 per cent, InfosysBSE 1.55 % by 1.55 per cent, M&M by 1.21 per cent and Sterlite Ind 1.09 per cent. Wipro gained 1.08 per cent, NTPC1.05 per cent and HDFC Bank 1.03 per cent.

    However, Tata Motorsdipped by 2.49 per cent, ICICI Bankby 1.03 per cent and RIL by 0.52 per cent.

    European markets were trading higher in their early trade as its indices in France, Germany and London inched up by 0.27 per cent to 0.73 per cent.

    The market breadth remained positive with 1,431 stocks gaining ground while 1,366 settling with losses.

    The total market turnover declined further to Rs 1,931.18 crore from Rs 1,954.27 crore yesterday.

    Meanwhile, Foreign Institutional Investors (FIIs) picked up shares worth Rs 182.59 crore yesterday, as per the provisional data issued by stock exchanges.

    Bad loans of state-run banks are Rs 1.43 lakh crore as of September - The Economic Times
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  • Originally Posted by herohiralal
    Well the mistake is holding onto that flat in Wakad. If your rental yields are so low why not sell it make money on the capital gains? There are many people who want to stay in Wakad.

    Also a different question. by paying 3K in maintenance are you getting water 24/7 using tankers or something else?

    +1, agree completely.
    No point in holding on to the flat when the yield is so low, far, far less than even bank FD !! If you can make some profit, exit & rotate the money somewhere else, maybe metals & FDs.

    Apart from this, other news is :-

    And the DP of Pune has again been stuck. Wonder when will these so called DP roads & PROPOSED things will come up.

    According to IFC (Institute For Competitiveness) report 2012, Pune
    has slipped from No.4 position in the country to No.9 as far as competitiveness is concerned. Lack of adequate infrastructure to support the public transport, power and airport amongst others have been cited as the biggest roadblock in the city's growth and development.
    :o
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  • Real Estate sentiments sluggish this Diwali: ASSOCHAM Survey

    The surge in demand for realty in festive season has fallen by 80% this year.

    Despite aggressive marketing and great offers made by developers on the eve of Diwali festival, the investment in the property have remained lukewarm due to high prices of houses in and around the NCR region. Major factors cited have been high prices of land and the unprecedented rise in the cost of construction materials, iron, cement, labour etc., says the ASSOCHAM survey.

    The survey was carried out in the major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. The survey was able to gather information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.

    The property analysts have predicted that till March next year the demand for plots, houses and flats may drop by at least 15 to 20 per cent.

    Complete report here :-

    Real Estate sentiments sluggish this Diwali: ASSOCHAM Survey
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  • With jobs rare, grads seek temporary ones

    Recruiters see 30-40% rise in temp CVs

    A few years ago, temp jobs typically brought unskilled or semi-skilled workers into the market. Young graduates haven’t had it so hard in a while. There are fewer campus offers being made by companies and even where offers have been made, the joining dates are getting stretched. This has forced many to queue up for temporary – better known as temp – jobs. Staffing firms have seen a 30-40% surge in the number of CVs coming in for such jobs in the past few months.

    Unlike in a regular job, where the recruit is on the payrolls of the company or organisation, a temp candidate sits on the payrolls of the staffing firm that has hired him but is deployed to different companies for short durations of 12-24 months for functions which are largely industry agnostic. According to Aneesh G Laikar, CEO of search firm Selectema Consulting, temps are preferred for functions like finance, administration, accounts, sales, data processing.

    A few years ago, temp jobs typically brought unskilled or semi-skilled workers into the market. Today, with permanent jobs hard to land, even MBAs and engineers are queuing up for these despite the fact that the salaries are 10-12% lesser.

    Sangeeta Lala, senior vice-president at temp staffing firm TeamLease Services, said the overall hiring momentum for temp jobs has held steady in the last six months or so, though hiring for permanent jobs has dwindled by as much as 20%. Going by her, where earlier they would receive 300-400 CVs a day, today that number has zoomed to over 550.

    “Thus, people are becoming more open to temp jobs. We are seeing a lot of applications.”
    The organised temping sector has, in fact, been growing at a healthy pace of 20-25% for the past year, said Rituparna Chakraborty, vice president, Indian Staffing Federation.

    With jobs rare, grads seek temporary ones - DNA - English News & Features - BUSINESS & ECONOMY - dnasyndication.com
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  • Originally Posted by realacres
    The surge in demand for realty in festive season has fallen by 80% this year.

    Despite aggressive marketing and great offers made by developers on the eve of Diwali festival, the investment in the property have remained lukewarm due to high prices of houses in and around the NCR region. Major factors cited have been high prices of land and the unprecedented rise in the cost of construction materials, iron, cement, labour etc., says the ASSOCHAM survey.

    The survey was carried out in the major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. The survey was able to gather information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.

    The property analysts have predicted that till March next year the demand for plots, houses and flats may drop by at least 15 to 20 per cent.

    Complete report here :-

    Real Estate sentiments sluggish this Diwali: ASSOCHAM Survey


    And Govt is trying to revive the economy by trying to fund realtors :D.
    Demand won't come back till the time prices become affordable or incomes increase to match prices.

    Check this link. Rental yields in metros have dropped to 1%!

    Metro rental yields hit record lows in 2012 - Hindustan Times
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  • I have posted Nanded City Review here :-

    https://www.indianrealestateforum.com/forum/city-forums/pune-real-estate/29232-nanded-city-redirect/page2?t=31164&page=2

    Post # 20.

    Please do have a look.

    Apart from this, the profits for Unitech & DB Realty has fallen by 45-50%, while DLF profits have fallen by 65%.
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  • Thanks for the link realpune :).
    This only solidifies the fact that the RE bubble is now way too big to sustain. I am sure, many investors wanting to make quick buck & invested post 2007 will surely see their returns go down the drain.
    And got some more news about Pune RE, will post it here soon.
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